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UPDATE 1-Cargo carrier Arrow Air bankrupt, to liquidate
* Company to liquidate after failing to find buyer
* More than 75 percent of workforce fired
* Arrow had emerged from bankruptcy in 2004
* MatlinPatterson affiliate has 95 percent equity stake
NEW YORK, July 1 (Reuters) - Arrow Air Inc, a Miami-based cargo carrier, has filed for bankruptcy protection and plans to liquidate after failing to find a buyer.
The 60-year-old company, which operated as Arrow Cargo and once had more than 3,500 customers, halted operations on Tuesday and filed a Chapter 11 petition on Wednesday in the U.S. bankruptcy court in Miami.
Arrow had emerged from a prior bankruptcy in June 2004. An affiliate of MatlinPatterson LP, a New York-based private equity firm specializing in distressed debt, owns a 95 percent equity stake, court records show.
According to its bankruptcy petition, Arrow has between $10 million and $50 million of assets, and between $100 million and $500 million of liabilities. Its parent Arrow Air Holdings Inc also sought court protection.
In a court filing, Arrow said rising jet fuel prices outpaced its ability to boost prices for customers. This resulted in "significant recurring operating losses" and a large operating deficit.
Arrow said it filed for court protection after "protracted negotiations" failed to result in a sale of the company.
It said an "orderly liquidation" will result in better returns for creditors.
Arrow said it fired all but 132 of its 540 employees after ending service.